Telecom operators in Pakistan are up in arms against what they deem as an unwarranted intrusion into their operations by the Federal Board of Revenue (FBR). The FBR’s recent move to block over half a million SIMs belonging to individuals who are not on the tax rolls has sparked outrage among Cellular Mobile Operators (CMOs). In a concerted effort, these operators have labeled the move as illegal and a breach of established laws governing the telecommunications sector.
Legal and Regulatory Concerns
In a worded letter addressed to the Ministry of Information Technology, Pakistan Telecommunication Authority (PTA), and other pertinent stakeholders, the CMOs underscored the violation of the Pakistan Telecommunication (Re-Organization) Act 1996, as well as license conditions and regulations. They argue that the FBR’s actions, as per Section 114B of the Income Tax Ordinance and Income Tax General Order (ITGO), are not only illegal but also run contrary to constitutional provisions and the Telecom Act.
Expressing concerns over the potential fallout, the CMOs have sought government intervention to protect the interests of both the telecom industry and its customers. They contend that while the intent behind the ITGO may be to bring non-compliant individuals into the tax net, the execution lacks foresight and legal scrutiny. The rushed implementation of the ITGO could have adverse ramifications, impeding customers’ access to essential services and undermining telecom operators’ rights.
Challenges and Technical Implications
Moreover, the telecom industry raises technical challenges associated with mass SIM blocking and highlights the absence of a clear mechanism for unblocking numbers post-compliance. They stress the need for comprehensive procedures, including prior notice to affected individuals, to ensure transparency and adherence to due process.
Central to the industry’s stance is the principle of consumer protection and fair treatment under the law. They advocate for extensive communication and legal recourse for individuals affected by the ITGO, emphasizing the importance of transparency and equitable enforcement of tax compliance measures.
The telecom operators call for a balanced approach that upholds legal standards while encouraging tax compliance. They assert that a transparent and equitable framework will not only avoid legal disputes but also start voluntary tax compliance, benefiting both the FBR and the telecom sector at large.
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